Financial Performance - Total revenue for the year ended December 31, 2024, was $54,426,402, a slight increase from $53,376,874 in 2023, representing a growth of approximately 2%[266] - Gross profit for 2024 was $4,311,323, compared to $4,349,569 in 2023, indicating a decrease of about 0.9%[266] - Total operating expenses decreased to $19,856,153 in 2024 from $26,180,786 in 2023, reflecting a reduction of approximately 24%[266] - The net loss attributable to common stockholders for 2024 was $22,378,042, down from $25,783,834 in 2023, showing an improvement of about 13.5%[266] - Basic and diluted net loss per share for 2024 was $1.17, compared to $2.15 in 2023, indicating a reduction in loss per share[266] - Net loss for the twelve months ended December 31, 2024, was $16,183,018, compared to a net loss of $18,542,654 for the same period in 2023, indicating a reduction in losses[271] - The company reported a total loss before income taxes of $16,183,018 for the year ended December 31, 2024, compared to a loss of $18,542,654 in 2023, indicating a reduction in losses[426] Assets and Liabilities - Total current assets decreased to $25,461,347 in 2024 from $36,607,780 in 2023, a decline of approximately 30.5%[264] - Total assets decreased to $54,311,892 in 2024 from $66,014,811 in 2023, representing a decrease of about 17.7%[264] - Total liabilities remained relatively stable at $29,778,963 in 2024 compared to $29,971,783 in 2023, showing a slight decrease of about 0.6%[264] - The accumulated deficit increased to $114,022,275 in 2024 from $91,644,233 in 2023, reflecting a rise of about 24.4%[264] - The company reported a negative working capital of $296,193 and an accumulated deficit of $114,022,275 as of December 31, 2024[285] Cash Flow and Capital Management - Cash flows from operating activities included stock-based compensation of $1,689,712 for 2024, compared to $577,931 in 2023, reflecting increased compensation expenses[271] - The company had cash at the end of the year amounting to $315,105, down from $3,833,195 at the beginning of the year[285] - The company intends to raise additional funds through equity offerings starting August 2025, utilizing an S-3 registration statement[289] - The Company raised approximately $6 million through a private placement of 6,000 Series A Convertible Preferred Stock and 80,000 warrants, with a deemed dividend of $5,788,493 recorded on issuance[377] Regulatory and Market Risks - The Company faces significant risks related to regulatory approvals, which can be time-consuming and costly, with potential adverse effects on product commercialization[123] - The U.S. Inflation Reduction Act of 2022 may impact the Company’s future business, particularly regarding Medicare pricing and rebates, although current sales in the U.S. are not applicable[122] - The Company is subject to extensive government regulations that may restrict its ability to sell products in certain markets, impacting its business model[110] - Geopolitical issues, such as the war in Ukraine, could adversely affect the Company's operations and financial condition due to its international business presence[115] Acquisitions and Investments - The company completed the acquisition of Cana for a total consideration of $5,469,787, which included $5,331,120 in cash and $138,667 in common stock[284] - The acquisition of ZipDoctor was finalized for a total of $158,788, which included $150,000 in cash and $8,788 in fees[277] - The company recognized a bargain purchase gain of $1,440,249 related to the acquisition of Cana[284] - The company issued 99,710 shares of common stock valued at $316,081 for the acquisition of a pharmaceutical distribution network from Bikas[279] Impairments and Write-downs - The company recorded an impairment charge of $454,280 in 2024, indicating potential asset write-downs[271] - The company recorded an impairment charge of $291,980 for the year ended December 31, 2024, related to certain branded pharmaceuticals and a telehealth platform[314] - The Company recognized a full impairment loss on its investment in CosmoFarmacy LP, writing off its entire carrying amount, which was $160,470 in 2023[360] Taxation and Deferred Tax Assets - The total deferred tax assets increased to $18,277,172 in 2024 from $14,418,483 in 2023, primarily due to an increase in net operating loss carryforwards[427] - The company has provided a valuation allowance of $18,041,879 against its deferred tax assets, reflecting management's assessment that realization of these assets is not likely[427] - The company recognized a total current tax provision of $0 for both 2024 and 2023, indicating no current tax liabilities[425] Management and Corporate Governance - Management has expressed substantial doubt regarding the company's ability to continue as a going concern[290] - The company has a related party transaction with Doc Pharma S.A., where the CEO of Doc Pharma is the son of the company's CEO, indicating potential conflicts of interest[432]
mos Health (COSM) - 2024 Q4 - Annual Report